Overtime Pay Calculator
Your normal pay rate before overtime
Your standard weekly hours (usually 40)
Most common is time-and-a-half for hours over 40
Hours worked beyond regular schedule
Select your pay period
Estimate for federal/state taxes (optional)
Your Overtime Earnings
Extra pay for overtime hours
Pay Breakdown
How This Was Calculated
Your calculation will appear here with a step-by-step explanation of how your overtime pay was calculated.
Important: Overtime is legally required for non-exempt employees who work over 40 hours in a workweek. Some states have daily overtime rules for hours over 8 or 12 in a day.
Overtime Formula:
Overtime Pay = Overtime Hours × (Regular Rate × Overtime Multiplier)
Common Overtime Calculation Mistakes
Mistake 1: Not including bonuses in rate
Non-discretionary bonuses must be included when calculating your regular rate for overtime. This can increase your overtime pay.
Mistake 2: Daily vs weekly overtime
Federal law uses weekly overtime (over 40 hours), but some states require daily overtime (over 8 hours). Know your state rules.
Mistake 3: Incorrect pay period
Overtime is calculated per workweek, not per pay period. A biweekly pay period with 45 hours one week and 35 the next still owes 5 hours of overtime.
Mistake 4: Forgetting about breaks
Paid breaks count as hours worked. Unpaid meal breaks (typically 30+ minutes) don’t count toward overtime calculations.
Common Overtime Pay Examples
| Regular Rate | Overtime Hours | Overtime Rate | Overtime Pay | Total Weekly Pay |
|---|---|---|---|---|
| $15.00/hr | 5 hours | 1.5x | $112.50 | $712.50 |
| $22.50/hr | 10 hours | 1.5x | $337.50 | $1,237.50 |
| $18.00/hr | 8 hours | 2x | $288.00 | $1,008.00 |
These examples assume 40 regular hours at the base rate plus overtime hours.
How Overtime Pay Calculations Work
Overtime pay is the additional compensation you receive for working more than your standard hours. In the United States, the Fair Labor Standards Act (FLSA) requires employers to pay non-exempt employees at least one and one-half times their regular rate for hours worked over 40 in a workweek.
The basic overtime calculation formula is straightforward:
Overtime Pay Formula:
Overtime Pay = Overtime Hours × (Regular Rate × 1.5)
For double time: Overtime Pay = Overtime Hours × (Regular Rate × 2)
Your “regular rate” includes more than just your base hourly wage. It encompasses all compensation earned during the workweek, including non-discretionary bonuses, shift differentials, and certain types of commissions. This is divided by total hours worked to determine the true regular rate for overtime calculations.
What Counts Toward Your Regular Rate
Many employees don’t realize that their overtime rate should be based on their true regular rate, not just their base hourly wage. According to the Department of Labor, the regular rate includes:
- Hourly wages
- Non-discretionary bonuses (production bonuses, attendance bonuses)
- Shift differentials (extra pay for night shifts or weekends)
- Certain commissions
- Piece-rate earnings
Excluded from the regular rate are discretionary bonuses, gifts, vacation pay, sick pay, holiday pay, and reimbursable expenses.
Example: If you earn $20/hour base pay plus a $100 weekly production bonus and work 45 hours, your regular rate isn’t $20. It’s ($900 base pay + $100 bonus) ÷ 45 hours = $22.22/hour. Your overtime rate would be $22.22 × 1.5 = $33.33/hour for the 5 overtime hours.
State Overtime Laws and Variations
While federal law sets the baseline (time-and-a-half for hours over 40 in a workweek), many states have additional overtime rules that employers must follow. These can include:
| State | Daily Overtime | Weekly Overtime | Special Notes |
|---|---|---|---|
| California | Over 8 hours/day | Over 40 hours/week | Double time after 12 hours/day or 8th day in workweek |
| Colorado | Over 12 hours/day | Over 40 hours/week | Over 12 consecutive hours |
| Alaska | Over 8 hours/day | Over 40 hours/week | Applies to most employers |
| Texas | None | Over 40 hours/week | Federal standard only |
Always check your specific state’s labor department website for the most current overtime regulations that apply to your situation.
Who Is Exempt from Overtime?
Not all employees are entitled to overtime pay. The FLSA exempts certain categories of workers, including:
- Executive employees: Those who manage at least two full-time employees and have hiring/firing authority
- Administrative employees: Those who perform office or non-manual work directly related to management policies
- Professional employees: Those who perform work requiring advanced knowledge in a field of science or learning
- Outside sales employees: Those who make sales away from the employer’s place of business
- Certain computer employees: Computer systems analysts, programmers, and software engineers meeting specific criteria
Exemption depends on both job duties and salary level. As of 2024, most exempt employees must earn at least $684 per week ($35,568 annually). Some states have higher thresholds.
Real-World Overtime Scenarios
Scenario 1: Weekly Overtime with Bonus
Maria earns $25/hour as a warehouse supervisor. She receives a $150 weekly safety bonus if no accidents occur in her department. This week she worked 48 hours and earned the safety bonus.
Her regular rate calculation:
Base pay: 48 hours × $25 = $1,200
Plus bonus: $150
Total compensation: $1,350
Regular rate: $1,350 ÷ 48 hours = $28.125/hour
Overtime calculation:
Overtime hours: 8 hours (48 – 40)
Overtime rate: $28.125 × 1.5 = $42.1875/hour
Overtime pay: 8 × $42.1875 = $337.50
Total pay: $1,012.50 regular pay (40 × $25.3125*) + $337.50 overtime = $1,350
*Regular pay rate adjusted for bonus across all hours
Key Insight: The bonus increased Maria’s overtime rate from $37.50/hour ($25 × 1.5) to $42.19/hour, earning her an extra $37.50 in overtime pay because of the bonus inclusion.
Scenario 2: California Daily Overtime
Carlos works in California for $18/hour. His schedule this week:
- Monday: 10 hours
- Tuesday: 9 hours
- Wednesday: 8 hours
- Thursday: 9 hours
- Friday: 8 hours
- Total: 44 hours
California overtime calculations:
Daily overtime (hours over 8):
Monday: 2 hours × $18 × 1.5 = $54
Tuesday: 1 hour × $18 × 1.5 = $27
Thursday: 1 hour × $18 × 1.5 = $27
Total daily overtime: $108
Weekly overtime (hours over 40):
44 total hours – 40 = 4 hours weekly overtime
But… daily overtime hours count toward weekly total
Already accounted for 4 hours of daily overtime
No additional weekly overtime owed
Total overtime pay: $108
Total pay: (44 × $18) + $108 = $792 + $108 = $900
Overtime and Your Paycheck
When you work overtime, it affects your paycheck in several ways beyond just the higher hourly rate:
Tax Implications
Overtime pay is taxed at your marginal tax rate, which might be higher than your regular rate if it pushes you into a new tax bracket for that pay period. However, only the overtime portion is taxed at the higher rate.
Benefits Calculations
Some benefits like retirement contributions (if percentage-based) will increase with overtime earnings. Others like flat-rate health insurance deductions remain the same.
How to Spot Overtime Errors on Your Paycheck
Common signs your overtime might be miscalculated:
- Overtime rate equals regular rate: Your overtime hours should be paid at 1.5x (or more) your regular rate, not your base rate
- Missing bonus inclusion: Non-discretionary bonuses should increase your overtime rate for the entire workweek
- Incorrect overtime threshold: Overtime should start after 40 hours in the workweek (or earlier if your state has daily overtime)
- Pay period vs workweek confusion: Overtime is calculated per workweek, even if you’re paid biweekly or monthly
- Rounding errors: Employers can round time, but it should balance out over time (not always in their favor)
What to do if you find an error: First, document the discrepancy with your pay stubs and hours worked. Then speak with your payroll department. If unresolved, contact your state labor department or the U.S. Department of Labor. Most states have 2-3 year statutes of limitations for wage claims.
Overtime Calculation Tips and Best Practices
1. Track your own hours: Don’t rely solely on employer timekeeping systems. Keep your own records of hours worked, breaks taken, and any bonuses earned.
2. Understand your state’s rules: Know whether you’re entitled to daily overtime in addition to weekly overtime. This varies significantly by state.
3. Calculate your true regular rate: Include all non-discretionary compensation when determining what your overtime rate should be.
4. Consider the overtime vs additional job tradeoff: Sometimes a second job at a higher base rate might be better than overtime at 1.5x your current rate. Calculate both scenarios.
5. Plan for tax implications: Overtime can push you into a higher tax bracket for that pay period. Use our calculator to see your take-home pay after taxes.
Need to calculate different pay scenarios?
Try our other calculators: Take-Home Pay Calculator, Salary to Hourly Converter, or Bonus Tax Calculator.
Overtime Pay Frequently Asked Questions
Is overtime mandatory if my employer asks me to work extra hours?
Generally yes, for non-exempt employees. Employers can require overtime work, and you can be disciplined or terminated for refusing, unless you have a union contract stating otherwise. However, they must pay the required overtime premium for those hours.
Do I get overtime for working weekends or holidays?
Only if those hours put you over 40 hours for the workweek (or over daily limits in some states). Weekend and holiday work itself doesn’t trigger overtime unless required by state law, union contract, or company policy. Some employers voluntarily pay premium rates for weekends/holidays.
How is overtime calculated if I have two different pay rates?
If you perform different jobs at different rates during the same workweek, your regular rate is the weighted average. Add total earnings from all rates, divide by total hours worked. Overtime is 1.5x this weighted average for hours over 40.
Can my employer give comp time instead of overtime pay?
For private sector employees, generally no. Comp time (time off instead of overtime pay) is typically illegal under the FLSA. Public sector employees may receive comp time under specific conditions. Always check your state laws.
Does paid time off (PTO) count toward overtime calculations?
No, hours paid but not worked (PTO, vacation, sick leave, holidays) don’t count toward the 40-hour threshold for overtime. Only hours actually worked count toward triggering overtime pay requirements.
This tool provides estimates for educational purposes. For exact overtime calculations, consult with HR or a labor law professional.
Overtime Pay Calculation
Generated by SabiCalculator.com